Tanncam Investment Company, an Uzbeki-owned firm registered in Cambodia, has invested $10 million in India’s Netmeds, an e-commerce portal that facilitates orders for drugs and medicines, through the purchase of an equity stake, according to an announcement yesterday.
Through the purchase of the equity stake, Cambodia’s Tanncam joins in with the Russian-backed Sistema Asia Fund in providing a total of $14 million for Netmeds latest funding cycle. Netmeds will use the capital infusion to expand its reach in India and build up its consumer base.
Cambodian Investment Management, a financial services firm that is 30 percent owned by Tanncam, acted as an advisor for the deal.
Anthony Galliano, CEO of Cambodian Investment Management, explained that Tanncam’s decision to invest in the company comes from India’s massive population of 1.3 billion and its rapidly developing consumer market.
“Netmeds has demonstrated in less than two years, that it has built scale and consumer loyalty through the innovation of e-commerce country-wide,” he said. “This is an early stage investment with enormous potential.”
Pradeep Dadha, CEO of Netmeds, said that the funding reflects a renewed confidence in the e-commerce pharmaceutical industry which is currently undergoing new draft regulations to monitor and legitimise online healthcare portals to prevent the misuse and abuse of drugs and medical equipment.
“This new seal of approval and legitimacy has reignited interest from both investors and consumers,” he said. “We also believe that the investments, both made by international funds, demonstrate a healthy appetite for global investment in the Indian consumer products market and health care.”